ANALYST PRESENTATION Star Conference 2016 London, October 6th 2016 Business combination through the merger by incorporation of Centrale del Latte di Firenze Form and terms for the transaction From September, the 30th the merger by incorporation of CLF in CLT has taken effect. TERMS FOR THE TRANSACTION Exchange Rate n. 1 new ordinary share of CLT for 6.1965 ordinary CLF shares; CLT has increased its share capital from Euro 20,600,000 to 28,840,041.20 by issuing 4,000,020 new ordinary shares; Further to the merger, CLT has changed the name in CENTRALE DEL LATTE D’ITALIA S.p.A. and the ordinary shares are still listed on the MTA STAR segment organized and managed by Borsa Italiana S.p.A. (Alphanumeric Code: CLI ); Immediately after the effectiveness of the merger, CLI has transferred the firm CLF at the value of 24,780,000 Euro into a new company 100% subsidiary of CLI called Centrale del Latte della Toscana S.p.A. with the head office and plant in Florence. October, 6th 2016 London, STAR Conference 2016 Shareholders after the transaction Finanziaria Centrale del Latte di Torino S.p.A. Lavia S.S. 36,99% 29,87% City of Florence Fidi Toscana Firenze Chamber of Commerce City of Pistoia 2,56% Luzzati's Family 5,26% 2,31% Other shareholders < 5% 3,94% 6,83% 12,25% October,October, 6 th62016th 2016 London,London, STAR STAR Conference Conference 2016 2016 The new Company Centrale del Latte d’Italia S.p.A. 100 % 100 % 50% Centrale del Latte della Toscana Centrale del Latte di Vicenza Odilla Chocolat S.r.l. S.p.A. S.p.A. October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 Plants and Brands Plants’ location Brands October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 Centrale del Latte d’Italia – Market overwiew – Fresh Milk Iper + Super JAN – JUNE 2016 COMPETITOR ANALYSIS – MARKET SHARE VALUE ITALY FRESH MILK € 282 mln 7.2% 28.5% CLI Group 13.1% Parmalat Granarolo Private Labels 19.5% Altri 21.7% Source: IRI Infoscan I+S October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 Centrale del Latte d’Italia – Market overwiew – UHT JAN – JUNE 2016 COMPETITOR ANALYSIS – MARKET SHARE VALUE ITALY UHT MILK € 427 mln 3.5% 23.7% CLI Group Parmalat 33.9% Granarolo 3.6% Private Labels Sterilgarda 15.5% Altri 19.8% Source: IRI Infoscan I+S October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 Centrale del Latte d’Italia – Market overwiew – Fresh Milk Iper + Super JAN – JUNE 2016 COMPETITOR ANALYSIS – MARKET SHARE VALUE PIEM-LIG-TOS-VEN FRESH MILK € 75 mln 27.2% CLI Group 31.3% Parmalat Granarolo Private Labels 7.6% Altri 20.9% 13.0% Source: IRI Infoscan I+S October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 Centrale del Latte d’Italia – Market overwiew – UHT Milk Iper + Super JAN – JUNE 2016 COMPETITOR ANALYSIS – MARKET SHARE VALUE PIEM-LIG-TOS-VEN UHT MILK € 116 mln 12.8% 27.3% CLI Group Parmalat Granarolo 27.4% Private Labels 19.5% Altri 13.0% Source: IRI Infoscan I+S October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 Centrale del Latte d’Italia – Market overwiew – Yogurt Iper + Super JAN – JUNE 2016 COMPETITOR ANALYSIS – MARKET SHARE VALUE PIEM-LIG-TOS-VEN YOGURT € 180 mln 1.5% 1.5% 1.3% 9.4% CLI Group 31.5% Parmalat 14.6% Granarolo Yomo Muller Mila 2.7% Danone Private Labels Altri 11.3% 26.2% Source: IRI Infoscan I+S October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 New products launched in 2016 Range of milk products: • 250 ml format for UHT milk and cream; • Half litre bottle; • Promotional packaging (UHT milk); • Vintage bottle edition for Eataly; • Organic chocolate milk. October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 11 New products launched in 2016 Range of milk products: October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 12 New products launched in 2016 Other products: • Plant milk (soy, rice, oat), in different format; • Lactose-free yogurts; • Cured meats; • Soy drink for specific channels. October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 13 New products launched in 2016 October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 14 Product innovation In 2016, our company has been the first milk company in Italy to use 100 % packaging produced with renewable materials. October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 15 Marketing The company always supported its strong positioning in regional markets with strong marketing and communication investments. € 2.0 millions (4.1% of revenues 1 H 2015) € 2,3 millions (4.7% of revenues 2016) October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 16 Marketing • Advertising campaign; • Social media activity; • Sponsorship of public events; • Organization of promotional events; • Partecipation to sector’s international fairs: • 20° FHC (Shanghai, China); • Gourmet Expoforum (Turin, Italy); • Salone Carrefour 2016 (Milan, Italy); • SIAL (Paris, France); • Salone del gusto (Turin, Italy). October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 17 Marketing - Advertising October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 18 Marketing - Advertising October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 19 Marketing – promotional event October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 20 Marketing – sector’s fairs October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 21 MAIN MUKKI PRODUCTS October,6th october 6th 2016 2016 London,London, STAR STAR Conference Conference 2016 2016 2016 Mukki investments € 4.975 millions (6.2% of revenues 2015) October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 23 Planned activities Investments made for the complete food New group industrial processing chain plan (contratto di filiera) Projects Launch of new Merge Implementation products October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 24 Centrale del Latte di Torino & C. Pro – forma Income statement Half Year 2016 Year 2015 Sales 87,357 99,2% 176,657 98,7% Value of production 88,105 100,0% 179,032 100,0% Services (26,606) -30,2% (51,666) -28,9% Raw materials (43,486) -50,0% (89,613) -50,1% Others operating costs (1,024) 0,0% (2,172) 0,0% Costs of production (71,116) -81,3% (143,451) -80,1% Personnel costs (13,312) -15,1% (25,731) -14,4% EBITDA 3,677 4,2% 9,850 5,5% Depreciatione & Amortization (3,212) -3,6% (5,951) -3,3% EBIT ,465 0,5% 3,899 2,2% Interest income ,156 0,2% ,373 0,2% Financial expenses (,797) -0,9% (2,202) -1,2% Profit (loss) before tax (,176) -0,2% 2,070 1,2% Tax (,172) -0,2% (,634) -0,4% Group's profit (loss) after tax (,348) -0,4% 1,436 0,8% October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 25 Centrale del Latte di Torino & C. Pro – forma Balance sheet 30-june-16 % 31-dec-15 % Technical fixed assets 105,168 105,524 Intagibles fixed assets 18,572 18,576 Equity investments and securities 2,774 2,762 Financial receivables from affiliates ,140 ,140 Total fixed assets 126,654 94,6% 127,002 94,2% Trade receivables 24,908 25,918 Inventories 7,572 7,329 Other short terms assets 14,716 14,972 Trade payables (33,000) (33,971) Other payables (7,482) (6,811) Net working capital 6,714 5,0% 7,437 5,5% Non-current assets held for sale ,446 0,4% ,446 0,3% NET ASSETS 133,814 100,0% 134,885 100,0% Employee severance indemnity & other provisions 11,230 8,4% 11,018 8,2% Cash & equivalent (12,380) (14,253) Financial debt 70,500 72,399 Net Financial debts 58,120 43,4% 58,146 43,1% Share capital & reserves 65,019 65,204 Profit (loss) for the period (,555) ,517 Shareholder's equity 64,464 48,2% 65,721 48,7% NET LIABILITIES 133,814 100,0% 134,885 100,0% October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 26 Centrale del Latte di Torino & C. Consolidated income statement Half Year 2016 Year 2015 Sales 48,784 98,9% 96,851 98,7% Value of production 49,346 100,0% 98,319 100,0% Services (14,906) -30,2% (28,032) -28,5% Raw materials (24,515) -50,0% (49,719) -50,6% Others operating costs (0,499) 0,0% (1,045) 0,0% Costs of production (39,920) -81,3% (78,796) -80,1% Personnel costs (7,874) -16,0% (14,673) -14,9% EBITDA 1,552 3,1% 4,850 4,9% Deperciatione & Amortization (1,826) -3,7% (3,151) -3,2% EBIT (0,274) -0,6% 1,699 1,7% Interest income ,011 0,0% ,028 0,2% Financial expenses (,316) -0,6% (1,124) -1,1% Profit (loss) before tax (,579) -1,2% 0,603 0,6% Tax ,024 0,0% (,086) -0,1% Group's profit (loss) after tax (,555) -1,1% 0,517 0,5% October,6th october16 6 marzoth 2016 2016 2016 Milano,London,London, STAR STAR STAR Conference Conference Conference 2016 2016 2016 27 Centrale del Latte di Torino & C.